A strong jobs report could provide reassurance on economy

A strong jobs report could provide reassurance on economy

Citing rising interest rates that are beginning to impact the housing market, manufacturing surveys from Federal Reserve banks in Dallas, Philadelphia, and NY that were less than expected, and fears from stock market investors that the Federal Reserve may continue to push for interest rate increases to ward off inflation, some economists believe these factors could combine to lead the US economy into a tough situation.

The unemployment rate rose to 3.9 percent, while the labor force participation rate also rose slightly to 63.1 percent from 62.9 percent during the month.

Average hourly earnings rose 11 cents, or 0.4 percent, in December after gaining 0.2 percent in November. In September, Pelosi trashed a jobs report that analysts called the "greatest of all time", warning of "stagnant real wage growth for workers".

"The economy has been slowing, but someone forgot to tell the labor markets", said Jim Baird, chief investment officer, Plante Moran Financial Advisors. "Those two things can not coexist for very long".

"Either weakening demand will lead firms to dial back the pace of hiring or the robust pace of hiring will lead firms to ramp back up production", he said.

Stocks jumped Friday in response to the jobs figures.

The Dow Jones Industrial Average closed up 746 points, or about 3.3 percent, after plunging 660 points on Thursday.

Businesses appear to be looking through the financial market volatility, global growth concerns and uncertainties, and remain confident in the USA economic outlook.

Apple CEO Tim Cook said China's growth was hurt by "rising trade tensions with the United States".

Rohit Shetty, Sara Arrive at Kjo’s Home for ‘Simmba’ Success Party
Rohit might have announced the movie name through Akshay's cameo in Simmba , but never confirmed who the actress would be. Earning over $683k on Friday and $793k on Saturday, the film has earned $9.884 million (Rs 68.76) in global markets.

The main U.S. share indexes, which had tumbled on Thursday, also opened higher.

The government is about to enter its third week of a partial shutdown, with negotiations stalled over President Donald Trump's insistence that Democrats agree on funding for a wall along the border with Mexico. And they surged even more after Federal Reserve Chairman Jerome Powell indicated the central bank was in no hurry to raise interest rates further. "Expectations regarding job prospects and business conditions weakened, but still suggest that the economy will continue expanding at a solid pace in the short-term", said Lynn Franco, a senior director at the Conference Board.

USA financial markets are projecting no rate hikes in 2019.

Republican lawmakers attributed the job growth to the tax reforms undertaken by the Trump administration about a year ago.

The jobs report led to increases on the stock market Friday morning, after a downturn Thursday. Both were seen as more red flags that the economic expansion, now in its ninth year and the second longest on record, is losing steam.

Job gains were spread across a variety of industries with construction and manufacturing each posting gains of more than 30,000 jobs.

The December jobs statement contains some positive news, yet these gains threaten to slip away because of the Trump Shutdown.

Hiring jumped in healthcare, bars and restaurants, construction and, notably in manufacturing, especially for durable goods, fabricated metal products and computers and electronics - all sectors that complain of lower profits and lost sales due to global trade tensions. Retailers hired 23,800 more workers.

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